New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-07-05

DEMOCRATIC THEORIES IN THE Way
Looking back over half year Of extraordi-
nary business activity, IL Is seen thai wi'o
speculation and great fluctuations In pnoes
have been It's most striking features. lneso
are phenomena that almost invariably attend
an inflated condition of the currency, and ac-
cordinpM It appears that the initiation has
been great A year ago the Treasury had OUT
standing S76, OOO, 900 gold and $4,000, 600
silver certificates; now it has outstanding
SOL 100000 gold and $142, 100000 silver
certificates, an increase Of 100000 In
paper circulation. There are also outstand-
Ing $780, 600 more legal tenders than
year ago, and the actual circulation OF silver
dollars has increased $3,OO0.OOU. In one
itcm there has been reduction, $29, 727, S37
In bank notes, but the net imports Of gold
have been $35, 900, OOO and the production OF
tho mint probably $50. 600, 900 more than the
consumption In manufactures, while tho
Treasury holds Of the increased supply $45,-
oOO, 600 more than it did year ago, leaving
about $4,000, 900 more in circulation.
The distinguishing feature Of the situation
Ia that this remarkable addition to the circula-
ton and especially to the amount of small
notes in use, Of which $27. 10000 has been
put out already, has produced extraordinary
activity in speculation and wild fluctuations
in prices The imitation continues to this
time. During the past month. the Treasury
has put out $3.0OO,OOO silver certificates
more than it has taken in. and $1,7oS,579
more legal tenders, and 1885. 900 more gold
certificates, while redeeming S3, 1871, 423 bank
notes. Thus it has added 81. $4,000 to the
paper circulation, besides the gold coined
within about 800 900 and nearly that amount
of silver has been added to the circulation.
Yet the popularity Of speculation In June has
been violent fall in prices of stocks. wheat.
coffee and many other commodities. with weak
ness in woollep iron and some other manufact-
ures Imports are surprisingly largo and ex-
ceeded exports by $31 900, 600 in April and
May, with probability Of some increase in June.
In this condition the country has TO con-
front shrinkage in circulation. This may be
lessened by devices of the Treasury, but it VIII
not be possible long 10 prevent accumulation
in consequence of the excess Of revenues over
authorized expenditures. Within the past year
$75 100000 has been paid for pensions. but
IL is now suggested that $24 600 can be
paid within the next sixty days. Eight million
uV6 nunuTcu ulOusdnu uOidS hoS ptcp "HuO'
to deposits in banks, but it is suggested thai
the amount can be increased; about
$40, 100000 has been paid out In redemption
of bank notes, but it is reasoned that more than
81 500 600 per month may hereafter be re-
deemed. These and other eXpedients, 1t Is
hoped, may prevent any serious pressure Tor
two or three months But that kind OF policy
may suit spectators who want time to sell
things the people who engage in industrial
occupations or contemplate substantial invest
ments look for soDc basis more solid tb an tenn
porary expedicnts that may stave of reaction
for sixty or ninety days.
If the Administration has its way another
tariff agitation will begin next winter. The
one remedy it has to offer Is cutting down duties
on manufactured producs'-as if it were not
obvious that any moderate reduction of duties
| would tend to swell importations, which are
| already TOO large. The agitation must In any
case disturb important industries as every such
struggle has disturbed them since the Demo-
cratic party had power to threaten frcc-trade
revolution. The volume of business is large,
and productive industries arc expanded and
expanding rapidly, but over them all hangs
the uncertainty which an attempt to realize IN
government the theories Of the Democratic
party always produces.
INTERNATIONAL CAMPAIGNING.
IL